Lost in translation - demand from public sector to dry up?

This is a terrific case study from the Guardian with various relevant business studies angles…

The case study describes the competitive pressures facing a Yorkshire-based service business which specialises in providing translation services for both the public and private sector clients.

The forthcoming pubic sector spending review in the UK is poised to pull the rug from underneath many successful small businesses in the private sector.  The serice sector looks set to be particularly hard hit and there is growing evidence that the impact on private sector unemployment of government spending cuts could be significant.

The business featured is coming under two key pressures:

(1) A price war on translation services generated by competitors fighting for a share of the remaining public sector demand,

(2) The loss of demand from cancelled contracts

Interestingly, the business featured is able to partially offset the loss of public sector demand with growing revenues from firms looking to expand into emerging markets like China and India.  That looks like a useful broadening of the product and customer base, at a time when the prospects of suppliers to the public sector look so bleak.

BUSS4 Emerging Markets : Starbucks’ challenges in China [21 May 2012]
6 Essential M&A Cases: Tata Group buys Jaguar Land Rover [21 May 2012]
BUSS4 - Three Ways to Evaluate Emerging Markets [28 Apr 2012]
Competitiveness and organisational structure - a great example of delayering [20 Apr 2012]
Revision Presentation - Emerging Markets [7 Apr 2012]
The Dawning Age of the Chinese Multinational [7 Apr 2012]
BUSS4 M&A - the Benefits of Foreign Takeovers of UK Firms [7 Apr 2012]
It’s Back! Datsun Makes a Comeback [26 Mar 2012]
It’s Time for a Global Luxury Chinese Hotel Chain - for the Chinese [25 Mar 2012]
Pampering - demand booms as consumers seek an affordable treat [4 Mar 2012]
VW targets growth markets [26 Feb 2012]
Tata and the rise of Jaguar Land Rover [22 Feb 2012]
What’s gone wrong for Kodak? [19 Jan 2012]
Crisps and exchange rates [27 Dec 2011]
Revision Presentation - Workforce Planning [26 Dec 2011]
Time for this Dragon to Cut Costs to Keep his Health Clubs Fighting Fit [11 Dec 2011]
The Boston Matrix, whisky and booming exports [2 Dec 2011]
Cut price cup cake deal goes wrong…... [22 Nov 2011]
Tottenham Hotspur to switch from public to private limited company [16 Nov 2011]
Shoppers switch stores as income patterns change [11 Oct 2011]
Economic environment: Emerging Markets [7 Jun 2011]
Economic Environment: Debt bombshell [28 Apr 2011]
Private v Public Sector - A Clash of Two Cultures? [20 Apr 2011]
Triumph - A Classic Case of Niche Export Success [18 Apr 2011]
Kate & Wills - A Short-term boost to demand [9 Apr 2011]
The UK Economy - Private and Public Sector Pay [14 Mar 2011]
The Profit Margin Bloodbath of UK Recession [6 Mar 2011]
Protection for the endangered pasty [23 Feb 2011]
Commodity prices in action - soaring Copper [6 Feb 2011]
Technology in business - RFID takes on the counterfeiters [6 Feb 2011]
Government and the Economy lesson plan [30 Jan 2011]
Emerging Markets Video - The perfect plenary [29 Jan 2011]
How to find an export market [11 Jan 2011]
Video case study - Harris Tweed prospers through innovation and international expansion [29 Dec 2010]
Q&A - What is the difference between outsourcing and offshoring? [29 Dec 2010]
Its curtains for UK consumer spending [12 Dec 2010]
Schultz on Starbucks Growth Strategy and the China Opportunity [3 Dec 2010]
Will a price war and snow finally kill off JJB Sports? [3 Dec 2010]
JCB - A Great Case Study for Business Students [19 Nov 2010]
Starbucks goes for vertical integration to fuel growth in China [18 Nov 2010]
Making the FT Brand Sweat! [19 Oct 2010]
Analysing the Business Data - Marriage in Decline [19 Oct 2010]
Businesses argue the case for greater investment in public infrastructure [16 Oct 2010]
From public sector to private sector - will outsourcing take-off? [16 Oct 2010]
Nissan Goes for it In China [20 Sep 2010]
Who ate all the pies? [17 Sep 2010]
Strategy in Action - Crocs Comes Back from the Dead [4 Sep 2010]
Fiscal Policy - Where Does the Government Raise Finance? [30 Aug 2010]
Lesson Worksheet - Franchises [9 Aug 2010]
Nissan profits from a recovery in demand [30 Jul 2010]
Emerging markets fuel the fast-food growth for Yum! Brands [15 Jul 2010]
Demand for Foreign Holidays Takes a Sharp Dip [14 Jul 2010]
World Cup 2010 Business Winners and Losers [13 Jul 2010]
A significant rise in unemployment ahead for the UK [16 Jun 2010]
Emerging Stronger - How UK Businesses Responded to the Recession [14 Jun 2010]
Supermarkets set for a new price war? [13 Jun 2010]
Emerging from Recession - Manufacturing Leads the Way [1 Jun 2010]
Corruption in Russia makes it a Tough Emerging Market for International Brands [19 May 2010]
Howard Schultz on Starbuck’s Growth Prospects in China [19 May 2010]
The dangers of focus on one product [9 May 2010]
Corus chief calls for more government funds for the economy [8 Apr 2010]
BUSS4 Research - a Corus of Disapproval [1 Mar 2010]
Cool looking map to highlight globalisation [1 Mar 2010]
Retrenchment at the BBC [26 Feb 2010]
Managing a recruitment business through the recession [16 Feb 2010]
Taking Demand-based Pricing To Extremes [8 Feb 2010]
AQA BUSS4 Section B Practice Question - Dyson [7 Feb 2010]
Video case study - substitute goods benefiting from the recession [1 Feb 2010]
Strategy in a recession - Fusion Systems [1 Feb 2010]
Business priorities in a recession [1 Feb 2010]
Demand and Supply in Sction - Haggis [25 Jan 2010]
Product, pricing and profitability in a changing market [20 Jan 2010]
BRICS - Economic Growth in the Emerging Markets (Interactive Guide) [18 Jan 2010]
Revision Quiz - Government Spending & Taxation [13 Jan 2010]
Emerging Markets - How NOT to set up a business in China [11 Jan 2010]
Emerging Markets - Meet the Man who Invented the BRICS [5 Jan 2010]
Revision Presentation - Revenues and Demand [30 Dec 2009]
Video case study - competition drives down prices in India [28 Dec 2009]
Where Does Your Money Go? [16 Dec 2009]
Video Case Study - Luxury Sound Maker Ditches CDs [4 Dec 2009]
Outdoor Ice-skating heads firmly down the product life cycle [3 Dec 2009]
Emerging markets drive demand for oil [16 Nov 2009]
Emerging Markets Case Study - Mothercare International Expansion [7 Nov 2009]
Survive and prosper - emerging markets in the global recession [5 Nov 2009]
Emerging Markets - China’s Growth in Charts [5 Nov 2009]
Halloween - packed full of business studies lesson ideas [3 Nov 2009]
Q&A - How are businesses affected by unemployment? [27 Oct 2009]
Q&A - What are the main causes of unemployment? [27 Oct 2009]
Q&A - Explain what unemployment is and how it is measured [27 Oct 2009]
Managing Cash Flow - Beware the Economic Recovery [26 Oct 2009]
Government Spending - Interactive Guide to Where It Goes [18 Oct 2009]
Is BECTA for the Chop? [15 Oct 2009]
Strictly and X-Factor Drive Demand for Pizza [1 Oct 2009]
Luxury brands invest in India despite the global slowdown [23 Sep 2009]
A textbook example of how rising unemployment affects demand [23 Sep 2009]
Emerging Markets still have much to do to become good places to “do business” [16 Sep 2009]
Demand is booming for UK Cinemas [16 Sep 2009]
Ten reasons for UK businesses to invest in Brazil [16 Sep 2009]
Video briefing - Doing Business in Brazil & Mexico [15 Sep 2009]
Video case study: battling for survival in the restaurant trade [31 Aug 2009]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!